Panchkula has a mixed economy. Of a total population of 3,19,398 about 31.03% of its population has been enumerated as workers in the district against 28.64% for the state as a whole at the time of 1991 census. In the district 29.78% of its workers are engaged in agriculture activities which includes cultivators and agriculture's against 37.54% for the state as a whole which explains subsistence type of agricultural activities as well as diversification of economic activities in the district. The proportion of workers engaged in household industry is 1.83% in the district against 2.18% for Haryana. The percentage of workers in servicing, processing, repair and manufacturing is 13.26% in Panchkula against 9.60 for the state. The proportion of workers in construction, trade, transport, storage and communications is higher in the district than the whole state.

The district serves as important link between the hills and the plains. District of Panchkula remained industrially backward till the beginning of the twentieth century. Its manufacturing units were few and unimportant. Panchkula town of the district made rapid progress in the field of industrial development since it came into existence on 3rd July 1989. The district now has a prominent place in the industrial map of Haryana. Panchkula urban estate, HMT, Pinjore and Surajpur are important industrial centers. It also promotes animal husbandry, fisheries and forestry, which plays a subsidiary but an important role in agriculture economy. Irrigation in the district depends on tube wells. The percolation wells are also located in plain areas where sub-soil water is not too low. Kuhl irrigation is also prevalent in hilly tract of the district. The major Kharif crops are sugarcane, paddy, and maize, while minor or subsidiary crops are chilies, pulses, vegetables, etc. The major Rabi crops are wheat, gram, barley and oilseeds, while minor Rabi crops are barseem, methi, onion, garlic and other winter vegetables.